Macquarie Group Ltd
(ASX:MQG) has announced that Macquarie Bank has entered into an agreement to acquire an aircraft operating lease portfolio from a subsidiary of American International Group.
Macquarie Bank has agreed to acquire 47 aircraft from International Lease Finance Corporation for US$1.67 billion to be funded from existing cash reserves.
The company says the portfolio of aircraft comprises young, modern aircraft on lease to 35 airlines in 27 countries.
In connection with the transaction, Macquarie Bank will transfer to global aircraft leasing company Macquarie AirFrance, of which Macquarie owns 37.5%, the bank’s right to purchase six aircraft directly from International Lease Finance Corp on similar terms.
Macquarie says it considers the credit quality of the lessees to be above average for an aircraft operating lease portfolio.
Macquarie’s existing aircraft leasing business includes Macquarie Asset Leasing Trust and MAF.
CEO Greg Ward says this transaction leverages Macquarie’s existing expertise in asset leasing, demonstrates the strength of the company’s aircraft management capabilities and diversifies the client base of its aircraft fleet.
Macquarie says completion of the transaction is expected to occur over the remainder of calendar 2010.
In the year to March 30, 2009, Macquarie Group earned profit of $871 million.
